Mexico's President Peña Nieto and the Governor of Banco de Mexico, Agustín Carstens. The Mexican financial reform proposes that banks may invest in each other without merging
Article 12 of the Mexican financial reform proposed by Enrique Peña Nieto’s government and submitted to Congress for approval, seeks to amend the Act to Regulate Financial Groups, and includes changes that shall increase the influence of the executive, allow investments between financial institutions of different groups, strengthen corporate governance and improve administrative procedures, as well as increasing transparency, and allowing foreign governments to acquire shares as minority shareholders in Mexican financial institutions.
Thus, regarding the possibility of allowing investments among financial institutions of different groups, the proposal stipulates that those investments can be carried out through the different financial businesses within those groups; therefore, a bank may have an interest in an insurance company of another financial group without the obligation of having to merge or to buy it.
Currently, the only possibility provided is for the holding company to invest directly and with at least 51% of the capital of financial institutions and complementary or auxiliary services companies, which shall be held by the relevant Financial Group.
The legal system does not currently reflect the reality of the Mexican financial system, which is becoming more diversified and competitive each and every day. In this respect, the Mexican president, Enrique Peña Nieto, included six subsections within the section concerning Financial Groups, in order to “have a regulatory framework that suits the new economic and financial conditions within a globalized environment”.
The subsections refer to:
Modernization of the Corporate Structure. Allowinvestments in financial institutions without having to merge or to integrate them into the group, as long as the holdings of the same do not exceed 50% of the capital of the institution, in which case there will be a merger.
Substantial improvements in Corporate Governance. Strengthening the board of directors and general management by separating responsibilities and by providing the option of creating one or more committees consisting of independent directors.
Improved administrative procedures. With the aim of strengthening the corporate functions that can be carried out within a financial group.
Improvements to monitoring and sanctioning powers. In order to achieve effective consolidated supervision through diverse means of collaboration and the effective exchange of information among national and foreign authorities. Note that this section includes the possibility for foreign governments to participate in the share capital of financial group controlling companies in Mexico.
Responsibilities and corrective measures. Seek to prevent, and where necessary, correct any problems that may arise and which could affect the financial stability or solvency of either the holding company or of the financial institutions that make up the financial group.
Coordinating Committees of financial authorities.Whether temporary or permanent, they shall be chaired by whoever is chosen by the Mexican President; and they will seek to be a forum for the coordination of the measures and actions to be carried out or implement by the Ministry of Finance and Public Credit, the respective departments or agencies of the Federal Government and the Bank of Mexico, to ensure the safety of the financial system of the country.
You may view the full proposal in the following link.
Photo: Paranoid. TERRA13 acquired a portfolio of industrial properties in Mexico for $600 million
Terrafina, TERRA13, a Mexican real estate investment trust (FIBRA) advised by Prudential Real Estate Investors, will purchase a portfolio of Mexican industrial properties from Kimco Realty and its joint venture partner, American Industries for about $600 million, the company announced today. PREI is the real estate investment management and advisory business of Prudential Financial.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants”
The portfolio consists of 87 properties totaling about 11 million square feet that are occupied by a diverse range of multi-national tenants. The facilities are predominantly for light manufacturing in the automotive, aerospace and consumer goods sectors.
“The addition of these assets contributes to the diversification of Terrafina’s portfolio in terms of industry location and tenants,” said Alberto Chretin, CEO of Terrafina. “And it is perfectly aligned to Terrafina’s strategy to grow the portfolio through accretive acquisitions as a consolidator vehicle for quality industrial assets.”
With the addition of this portfolio, Terrafina grows to 233 properties with more than 30 million square feet of industrial space, making it the largest owner of industrial assets in Mexico, based on gross leasable area (GLA).
“This acquisition establishes Prudential Real Estate Investors’ ability to source quality properties and integrate them into Terrafina’s existing portfolio,” said Alfonso Munk, PREI’s head of Latin America. “The quality of these properties and the strength of the industrial sector in Mexico made this an extremely attractive transaction.”
Closing is subject to shareholder approval. Terrafina, which expects the transaction to be completed by the third quarter of 2013, will pay for the portfolio through existing credit facilities and the assumption of the existing debt on the portfolio.
Foto: Latin Trade Group. Ramón Leal Chapa de ALFA nombrado Gerente de Finanzas del Año por Latin Trade
The Latin Trade Group announces its selection of Ramon A. Leal Chapa as CFO of the Year. With this award, Leal Chapa joins the ranks of some of the most distinguished financial executives in Latin America.
Under Mr. Leal Chapa’s watch, Monterrey-based ALFA has seen EBITDA double since 2008 to $1.85 billion, and revenues top $15.2 billion in 2012. Over the same period, the company’s stock price has also increased nearly 850 percent – a rate much faster than the average for the Mexican Stock Exchange (BMV). The company has also made capital expenditures totaling $3.4 billion in the past four years – nearly $870 million in 2013 alone. Through a number of key acquisitions, the company has dramatically increased its international profile.
ALFA is a Mexican conglomeration of five companies in diverse industries, including petrochemicals, high-tech auto-parts, refrigerated foods, telecommunications, and a United States-based shale gas producing company. It is the world’s largest producer of aluminum engine components for the automotive industry, and one of the world’s largest producers of polyester. A subsidiary of the company is North America’s leading maker of processed meats, and the largest producer of hot dogs in the United States – producing 1.25 million tons per year. The company has 85 production plants across 18 countries in the Americas, Europe, and Asia, and employs about 60,000 people globally
Truly overseeing a corporation of this size, while increasing profits and share price, is a tremendous feat for any CFO. Leal Chapa joined ALFA in 2009, before which he occupied diverse executive positions at Vitro, including vice president of vice president of Strategic Planning, Mergers and Acquisitions, and vice president of Corporate Finance. Before, he held executive functions in Grupo Pulsar, Vector Casa de Bolsa, and Violy & Partners in New York.
Leal Chapa is a graduate of the Universidad de Monterrey, and holds a Masters degree in Operations Managements from Instituto Tecnologico de Monterrey, and an MBA from Harvard Business School.
Leal Chapa received the award in person at Latin Trade’s CFO Forum in Mexico City. The award has been given to professionals such as the CFOs of Petrobras and Cosan in Brazil, as well as America Movil and Grupo Mexico in Mexico.
LT CFO Forum are private events that offer CFOs, finance directors, treasurers and controllers from various industries in Latin America the opportunity to participate in high-level peer group discussions and interact in a private setting. The events equip CFOs with expert insight that helps them prepare for challenges across domestic and international borders.
Photo: Munerabig. SURA Now Showing Growth in El Salvador
According to La República newspaper, Grupo de Inversiones Suramericana (SURA)has recently informed the financial watchdog Superintendencia Financiera about the creation of a new subsidiary in El Salvador.
To that effect, SURA stated that the company would be called Suam Corredora de Seguros, with a capital base of 50.000 dollars.
The SURA Group’s participation in the organisation will be indirect, through its affiliate Sura Asset Management, which owns 99% of the new company.
Wikimedia CommonsFoto: Miletics Balazs
. Los salarios de los CFO y tesoreros registran el mayor aumento entre los profesionales financieros en 2012
North American finance professionals continue to see pay raises, but percentage increases fell last year for all but the executive tier, according to a survey by the Association for Financial Professionals (AFP). Average salaries for professionals in finance departments of corporations increased by 3.4 percent in 2012.
The 2013 AFP Compensation Survey provides base salary and bonus information for jobs in the finance profession for calendar year 2012 as well as data on base salaries effective on January 1, 2013. AFP has conducted this survey for 25 years.
At the executive level, the average percentage increase was 3.8 percent, up from 3.3 percent in 2011 and higher than in any year since 2008. Among executives, CFOs and treasurers reported the highest increase at 4.3 percent each.
“A low interest-rate environment, increased regulations around the world, complex financial technologies and heightened risks, are a few of the challenges that treasurers and CFOs face,” said Jim Kaitz, AFP’s president and CEO. “Their salary increases reflect the level of responsibility that companies place in their treasurers and CFOs.”
Management-level professionals reported an increase of 3.5 percent in 2012, down slightly from 3.7 percent in 2011. Staff-level professionals saw a 3.1 percent increase, down from 3.5 percent in 2011. Of all tracked job titles, however, Assistant Cash Managers received the largest salary increase in 2012 – 4.7% on average.
Advanced degrees and certifications were linked to higher salaries, especially at the staff level, where MBAs earned about 19.2 percent more than peers without an MBA, but the percentage difference tended to shrink to 8.1 percent at the executive level. Professionals with a Certified Treasury Professionals TM credential at the staff level earned on average eight percent more than their uncertified peers.
Wikimedia CommonsFoto: U.S. Department of Agriculture. BNY Mellon planea incrementar un 50% su fuerza de ventas en wealth management
BNY Mellon is rolling out a major two-year recruiting campaign to increase BNY Mellon Wealth Management’s sales force by 50 percent. In addition, the firm intends to add private bankers and mortgage bankers, portfolio managers and wealth strategists as well as additional sales support staff.
The campaign represents an important new phase in BNY Mellon Wealth Management’s multi-year growth strategy to continue to build presence and capabilities in the US and globally. Despite the sharp economic downturn of 2008, in the past four years BNY Mellon Wealth Management has grown its footprint both organically and through acquisitions. During that time, the firm has made acquisitions in Toronto and Chicago, opened new offices in Dallas, Washington and the Cayman Islands, and added two new offices in Florida, where it now has a total of seven locations. With this initiative, the firm plans to strengthen the sales teams in its current locations and establish offices in other key wealth markets.
By the end of last year, BNY Mellon Wealth Management’s total client assets reached a record high of more than $188 billion, making it one of the 10 largest US wealth managers in 2012, according to Barron’s.
“BNY Mellon is deeply committed to building on the strong momentum we’ve seen in our wealth management business over the past several years,” said Curtis Arledge, CEO of BNY Mellon Investment Management. “The wealth management business is an integral part of BNY Mellon Investment Management. As part of a long-term growth strategy, we are dedicating substantial resources toward strengthening wealth management’s global distribution capabilities and team.”
Foto: Ngsyatowuahg . La fortuna de las 15 mujeres más ricas de China supera los 30.000 millones de dólares
“Female entrepreneurs in China have played an integral role in the country’s growth story,” Mykolas Rambus, CEO, Wealth-X, said. “In the cut-throat world of business, these women have outperformed many of their male counterparts to join the ranks of China’s wealthiest individuals.”
Only three out of the 15 women on the list derived their fortunes from inheritance. The combined wealth of the top 15 exceeds US$30 billion. Eleven women on the list are entrepreneurs. One is an executive at a conglomerate. Here are the top fifteen:
Real estate wealth dominates the list, as total wealth attributed to the sector comprises over 60% of the combined net worth of the 15 wealthiest Chinese women. This reflects the strong potential for growth in the sector even as it grapples with property cooling measures enacted by the government.
Mr. Rambus added, “Wealth creation in China is inextricably linked to real estate. Our list also reflects the reality of China’s real estate market; that increased investment is not only observable in residential and commercial properties, but also luxury hotels and clubhouses. This has given rise to a demand for diverse architectural services, such as environmental landscaping. Indeed, some of China’s wealthiest women are transforming the country’s real estate market.”
Foto: Mauro Cateb. Bestinver y la estrategia de dividendos de ING IM, las más “value” para invertir en Europa
What is pure value and what is pure growth when we are talking about investing in European equities?
amLeague summarizes the information derived from the AlphaValue rankings in order to have a clear overview of the Growth and Value profiles of the 22 asset managers present on the Euro and Europe Equities mandate.
For the European equities mandate the Spanish value asset management team led by Francisco Garcia Paramés from Bestinver leads the value ranking, followed by Federal Fianance Gestion. On the growth side, more heavily tilted toward the extremes of the diagram, we find another French asset manager, Delubac Asset Management, followed by BNP Paribas IP.
Looking at the Euro mandate, ING IM is leader on the value side with the team formed by Nicolas Simar and Manu Vandenbulck focused on dividend sustainability. The second most value oriented portfolio within the 22 mandates followed by amLeague is managed by Marc Renaud and Yohan Salleron in Mandarin Gestion. On the growth side, the leader is Jeremy Whitley and his team, from Aberdeen, and Roche-Brune Asset Management.
According to amLeague, the assessed indicators emphasize the specific approaches adopted by each asset manager and therefore provide investors with comparable, transparent and up-to-date information. The assessment is held by Alphavalue which analyses variables such as fundamental upside, dividend yield, and return on equity of the portfolio for the value score, and operating cash flows, EPS growth, sales growth, book value per share growth of the portfolio for the growth score.
Wikimedia CommonsFoto: Raygeorge. Morgan Creek Capital Management adquiere el negocio de alternativos de Signet Capital Management
Morgan Creek Capital Management today announced it has reached an agreement to acquire the Alternative Funds business of Signet Capital Management Ltd., a European-based institutional fixed income investment firm. Signet’s Alternative Funds business has approximately $700 million in assets under management.
Under the agreement, Signet will contribute its funds and senior investment management team to Morgan Creek’s platform, where they will apply their global fixed income experience for the benefit of Morgan Creek clients.
The current senior management team at Signet—including the firm’s Founder and Co-Head of Investment Management, Mr. Marquardt, and CEO and Co-Head of Investment Management, Dr. Serge Umansky—will join Morgan Creek and continue their current roles serving clients of Signet’s funds as well as complementing Morgan Creek’s fixed income capabilities. Signet’s offices in London, and Lausanne, Switzerland, will become part of Morgan Creek’s global network.
“We are excited to have Bob, Serge and the entire Signet team join Morgan Creek, a union that will benefit both our present and future clients,” said Mark W. Yusko, the Chief Investment Officer of Morgan Creek. “This agreement represents a major achievement in our overall strategy to expand our global footprint and bring on talented investment professionals to help address the increasingly complex global investment environment.”
Foto: Haitham Alfalah . BlackRock, a por los mercados de bienes raíces de Asia y Europa tras la compra de MGPA
BlackRock today announced that it has entered into a definitive agreement to acquire MGPA, an independently-managed private equity real estate investment advisory company in Asia-Pacific and Europe, significantly extending BlackRock’s real estate investment capabilities in these regions, said the firm in a statement.
The planned acquisition of MGPA’s complete business makes BlackRock a truly global real estate investment manager, with pro forma AUM of approximately $25 billion as of March 31, 2013 and substantial investment teams in the world’s top six markets, which represent 75% of the commercial real estate investable universe. It adds further best-inclass investment teams and capabilities to the BlackRock platform and demonstrates the Firm’s strong commitment to being a leader in real estate solutions.
“Today’s agreement advances BlackRock’s growth strategy in Asia-Pacific and Europe, where we are seeking to enhance our local offerings and build on the Firm’s real estate experience,” said Jack Chandler, Global Head of Real Estate for BlackRock. “It further strengthens our ability to offer clients an unrivaled set of solutions to the challenges of a low-return, high volatility environment, including access to MGPA’s top-performing investment teams and exceptional capabilities in key markets.”
MGPA’s offerings complement BlackRock’s existing real estate investment solutions, with virtually no overlap of people or products. The combined platform will also créate the potential to accelerate growth of MGPA’s business by leveraging BlackRock’s distribution capabilities for institutional and retail clients.
MGPA is focused on real estate funds management, co-investments and separate account mandates for institutional investors, offering products across the risk/return spectrum, including development, and has $12 billion in AUM as of March 31, 2013.
With an on-the-ground presence in 13 offices in Asia-Pacific and Europe, MGPA will augment BlackRock’s real estate investment platform with its pan-Asian and pan-European investment capabilities and complementary geographic footprint.
The transaction is expected to close in the third quarter of 2013, subject to customary regulatory approvals and closing conditions. The financial impact of the transaction is not material to BlackRock earnings per share. Terms were not disclosed. MGPA was advised by Berkshire Capital Securities LLC.
